[quote=Azathoth]
You're right about the risk, in this volatile environment it wouldn't be advisable for them to organize a shadehunt for him. 

However, I still think they would put some discreet efforts to getting him out of the city (assuming they are aware of what Shades are) so his presence doesn't negatively reflect on the Circle in the event that the Order discovers him. It would be easy to propagandize his presence as proof of the Circle's corruption, commoners don't need to understand what Shade's are with the amount of support they've been showing the Paladins. All they would have to do is connect it to necromancy, and the Circle would lose what little favor it still has.

Quite the conundrum.
[/quote]

He'd be able to understand if they approached him for that reason at the least, and while he wouldn't necessarily abandon his pursuit of these rumors he would be convinced to be more subtle about it. Ditching the armor to use his spirit form and operating at night when, I assume, it would be almost impossible to spot him would be viable options. 

Alternatively he'll find a more suitable shell to take on. There's probably a corpse in good enough condition somewhere in the city for him to possess, more so if it's an animal's.

Rat with daggers. Heh...